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Lithuanian startups mull moving to Latvia
BC, Vilnius, 13.12.2016.
Print version
Print versionLithuanian startups have already started thinking about moving to Latvia as the tax rate for startup salaries in Lithuania has become three times as high as in the neighboring county, whose parliament has recently approved tax advantages for innovative businesses, LETA/BNS citing the daily Lietuvos Zinios reported on Tuesday.
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"After making a good start and facilitating a particularly successful development of the startup ecosystem over the past years, creating the conditions for startups to thrive, Lithuania seems to be gradually losing its positions in the competitive struggle to its neighbors," it quoted Elena Vegelyte, a tax adviser with the law firm Cobalt, as saying.
In her words, Latvia-based seed startups will pay a flat tax of 252 euros per employee on salaries below 4,050 euros per month. Thus, a 1,200-euro salary paid by a startup in Latvia will be subject to personal income and social insurance taxes at a rate of 21%, while the same amount of salary in Lithuania would be taxed at a rate of 54.98%.
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